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Cablegate: Attempts by Iranian Firm to Acquire Machine Tools From Brazil (S)

VZCZCXYZ0003
PP RUEHWEB

DE RUEHC #3431 3361557

ZNY SSSSS ZZH
P R 021553Z DEC 09
FM SECSTATE WASHDC
TO RUEHBR/AMEMBASSY BRASILIA PRIORITY 5084
INFO MISSILE TECHNOLOGY CONTROL REGIME COLLECTIVE

S E C R E T STATE 123431

SIPDIS

E.O. 12958: DECL: 12/02/2034
TAGS: PARM MTCRE PREL IR BR
SUBJECT: ATTEMPTS BY IRANIAN FIRM TO ACQUIRE MACHINE TOOLS FROM BRAZIL (S)
Classified By: ISN/MTR DIRECTOR PAM DURHAM FOR REASONS 1.4 (B), (C), AND (D).

1. (U) This is an action request. Embassy Brasilia, Please see paragraph 3.

2. (S) Background: We want to alert the government of Brazil to a possible effort by the Iranian firm Machine Sazi Tabriz to acquire machine tools from a Brazilian company. Machine Sazi Tabriz is the largest manufacturer of machine tools in Iran and has likely supplied imported machine tools to Iran's nuclear and ballistic missile programs. Because we are concerned that any export of machine tools to Machine Sazi Tabriz potentially could be diverted to Iran's Weapons development programs, we want to share this information with Brazilian officials and ask that they investigate this activity. We also want to request that they take all appropriate measures, including the use of their catch-all controls, to closely scrutinize all machine tool exports to Iran to prevent such equipment from being used to support programs of proliferation concern.

3. (U) Action Request: Request Embassy Brasilia approach appropriate host government officials to deliver talking points in paragraph 4 and report response. Talking point may also be left as a non-paper.

4. (S) Begin talking points/non-paper: (SECRET//REL BRAZIL)

-- We would like to alert you to information of potential proliferation concern and request your assistance in investigating this activity.

-- The United States has information that in October 2009 Iran's Machine Sazi Tabriz was working to finalize a purchase of machine tools from Brazil's Mello S.A. Maquinas e Equipamentos. The Iranian intermediary Poshtiban Abzar Parswas helping to facilitate this transaction.

-- Machine Sazi Tabriz is the largest machine tool manufacturer in Iran and likely supplies some imported machine tools to Iran's nuclear and ballistic missile programs.

-- We are bringing this matter to your attention to Support your export control efforts as we are concerned that Machine Sazi Tabriz could potentially be seeking machines from Brazil on behalf of weapons-related end-users in Iran.

-- In addition, UN Security Council Resolution 1737 Requires states to take necessary measures to prevent the supply, sale or transfer of items that a state determines would Contribute to Iran's ballistic missile or nuclear- related activities.

-- We hope you will investigate this activity and use your catch-all authorities to closely scrutinize all machine tool exports to Iran to ensure that such equipment is not used to support weapons development applications.

-- We look forward to continued cooperation on export Control and nonproliferation issues and would appreciate hearing of the actions you take in response to this information at The earliest possible time. End talking points/non-paper

5. (U) Washington POC is ISN/MTR James Mayes (Phone: XXXX).

Please slug any reporting on this issue for ISN/MTR.

6. (U) A word version file of this document will be posted at www.state.sgov.gov/demarche.

CLINTON

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